The company was founded by Fritz Sauckel with approval from Adolf Hitler, on May 27, 1936. The original assets of the plant were from the recently expropriated Suhler Simson-Werke. In 1939, a modern plant was built in Weimar, which would later become Gustloff Werke's headquarters. The company was also renamed to Wilhelm Gustloff Werke, Nationalsozialistische Industriestiftung for tax and statutory reasons the same year. Before 1943, another branch of Gustloff Werke was built next to the Buchenwald concentration camp; about 2290 prisoners at the camps were forced to work at said branch. The company later acquired AGO Flugzeugwerke and REIMAHG in 1944. It is not known when the factory was closed, though it was likely closed at the end of World War II as there is no mention of Gustloff Werke after that time.